Correlation Between AOI Electronics and Cullen/Frost Bankers
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Cullen/Frost Bankers at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AOI Electronics and Cullen/Frost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AOI Electronics Co and CullenFrost Bankers, you can compare the effects of market volatilities on AOI Electronics and Cullen/Frost Bankers and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AOI Electronics with a short position of Cullen/Frost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Cullen/Frost Bankers.
Diversification Opportunities for AOI Electronics and Cullen/Frost Bankers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Cullen/Frost is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen/Frost Bankers and AOI Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AOI Electronics Co are associated (or correlated) with Cullen/Frost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen/Frost Bankers has no effect on the direction of AOI Electronics i.e., AOI Electronics and Cullen/Frost Bankers go up and down completely randomly.
Pair Corralation between AOI Electronics and Cullen/Frost Bankers
If you would invest 9,507 in CullenFrost Bankers on December 11, 2024 and sell it today you would earn a total of 2,293 from holding CullenFrost Bankers or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
AOI Electronics Co vs. CullenFrost Bankers
Performance |
| Timeline |
| AOI Electronics |
| Cullen/Frost Bankers |
AOI Electronics and Cullen/Frost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Cullen/Frost Bankers
The main advantage of trading using opposite AOI Electronics and Cullen/Frost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Cullen/Frost Bankers can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cullen/Frost Bankers will offset losses from the drop in Cullen/Frost Bankers' long position.| AOI Electronics vs. Molson Coors Beverage | ||
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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